00:00 President
Throughout the week, we spoke with CEOs and industry analysts on the way in which AI’s booming demand has fueled an energy transition. Today, we are refined on AI and public services. The British startup of renewable energies Octopus Energy turns his arm of artificial intelligence Kracken in what could create an autonomous entity worth $ 15 billion according to certain estimates. Kracken was the key to the growth of Octopus Energy to the largest electricity supplier in the United Kingdom. Join us for more, the CEO of Kracken Amir Orad, uh here with us in the studio. Thank you for being here.
00:32 Amir Orad
THANKS.
00:33 President
So you have all prepared yourself to turn. Octopus is private, Crocken will be private, but I assume that let’s talk about what you do. You are indeed a software company.
00:41 Amir Orad
Pure software company.
00:42 President
And your software helps to transport energy, however. Is this road electricity? Is this the right way to describe it?
00:47 Amir Orad
If you think about it, we have public service companies, National Grid for example, and they have endless infrastructure to manage and exploit their day. We modernize all these infrastructures so that they can manage modern energy needs, electric vehicles and soda panels, for better customer service, to take advantage of AI to reduce costs, and everything else, including the grip of certain energy needs.
01:05 President
So, I suppose that the difficulty with modern difficulties or one of the difficulties with the modern electrical network is that you have many different entries. You have, you know, your fossil fuels in some cases, you have, you know, whatever the renewable energy sources. Uh, and you are somehow sitting yourself in the middle.
01:24 Amir Orad
Exactly correct.
01:25 President
Find out when the demand increases, where do you need to draw more, where do you need to get less? Is it?
01:29 Amir Orad
If you think about it, what has happened in the past decade, because we have different types of energy production, we have volatile energy production, mainly solar, which is really cheap, but only during the day. We have batteries overnight. And consumption, we have more electric vehicles at 7:00 p.m. we all connect them. We have spikes. Thus, consumption and generation have tips. And you want to flatten it to reduce costs. Otherwise, you spend on infrastructure for peak seasons. We are therefore trying to flatten it on both sides, generation and consumption, and we ensure that we incite consumers to use the right energy at the right time, which is cheaper and cleaner.
02:02 President
And so your customers are network operators, as you mentioned
02:05 Amir Orad
Major major public services. Yes.
02:07 President
And so, what are you doing by doing this separation? What does it do for all of you?
02:11 Amir Orad
Kracken already supports 70 million households worldwide. We have just announced that we are already half a billion dollars of annual recurring revenues is today. And what we have found is because we were born in an energy company, some of the other energy companies were less comfortable working with someone who belongs to their competitor. So, number one, we are disappearing. It was not really a problem, but it was a perceived problem. Make it disappear. Number two, we are a pure software company. That’s all we do SAS. We can operate independently, depending on business airlocks with SAS Board, SAS Metrics, etc., etc. And because we grow very quickly, this support system allows us to create an option to buy other software companies, to be able to have our own currency, etc., etc.
02:48 President
Is there anyone else? I mean, what are your main competitors in this area?
02:52 Amir Orad
Thus, the two best spaces in the space have been SAP and Oracle, which are really large companies, but 20 more years. And their infrastructure, their architecture was very rigid and very limited. Um we take advantage of AI, decisions based on cloud data. We already deal with 15 billion data points every day to optimize the network, optimize demand, etc., etc. We therefore in fact replace these SAP, Oracle, Salesforce, IBM technologies with a single platform, replacing 20 to 30 small systems which are all connected to the Cloud, focused on AI data.